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Your World With Neil Cavuto

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Mcconnell 11, Boehner 4, America 3, Cap 3, New York 3, Us 3, Moody 's 3, Geico 3, Laura 3, Gingrich 3, Neil Cavuto 2, Verizon 2, Michigan 2, Carney 2, S&p 2, Washington 2, Martha 2, Chris Brown 2, Bachmann 2, New Zealand 1,
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  FOX News    Your World With Neil Cavuto    News/Business. Money tips  
   from Wall Street. New. (CC)  

    July 14, 2011
    4:00 - 5:00pm EDT  

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>> have to try and do the biggest deal possible. >> an opportunity for a game changer. >> the largest possible deal. >>chris: the president wants to go big so why are the numbers going down? welcome, everyone, i am here for neil cavuto in "your world." a new round of debt talks get under way at the white house but it is not all smiles. because the president's listen is not looking so grand. we have gone from talk of $2 trillion in cuts to $1.7 trillion and now closer to $1.5 trillion. and there is in guarantee that money won't go lower as the talks drag on. utah republican senator lee thinks we need to go back but $1.5 trillion in cuts spread out over ten years is that going
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big? >>guest: no, in the big at all. i am not sure it is going anywhere. one congress cannot bind another congress. so no matter how big the cuts are, if they are stretched out over 10 years and not accompanied by a constitutional amendment we have no guarantee they will be followed. >>chris: do you get a sense both sides are trying to get a deal and making it small enough to be palatable because the democrats and the administration will not make a big deal without tax increases, so both will take small increases and small cuts? >>guest: someone suggested that and i believe we're not nearing a deal in that area at all. at this point the only plan on the table that has any significant degree of public support is that found in the cut, cap, and balance act we
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filed last week, a week ago today, and we have the support from about 35 senate republicans, a companion bill is introduced today or tomorrow in the house of representatives and we expect a lot of support there. >>chris: how does that plan work? i am in the sure if everyone understands how it works? >>guest: it involves immediate spending cuts and takes the domestic discretionary spending for fiscal year 2012 become to 2006 spending levels. and it brings a series of cuts and on the senate side results in $6 trillion worth of cuts the next 10 years. middle east -- most importantly it require as balanced budget amendment to the constitution as a condition of raising the debt limit. we have to have that in order to make the deal work. the land is growing.
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the only plan out there. >> another plan, mcconnell plan is gaining acceptance and durbin said if we don't get an agreement we will have to pass a mcconnell type plan, and it is gaining support. do you get that sense? >>guest: that plan has been described as a plan (b). a number of us are not willing to consider that and will not support it. i pledged since before i took office i will not support any plan that is not accompanied by a constitutional amendment. >>chris: what happens august 2nd? we have heard scare tactics by the administration on social security checks tell me what happens on that day if we do not have an agreement?
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you have a plan that would enable social security checks to be mailed out and other expenditures to be taken care of? >>guest: my plan would address the debt limit and allow the government to operate or social security checks to be sent out so i find it insulting the president's unwillingness to go along with the plan. he has yet to describe what it is about 9 idea of a constitutional amendment that he finds repugnant and the president dismissed it out of hand and the next day said we will go ahead and cut all of the social security checks going out to retirees without any explanation why they would be the first on the chopping block. we are bringing in $200 billion a month and our interest payments are less than 10 percent of that and social security payments are $50 billion why on earth would you cut social security checks first?
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that doesn't make sense to me and it is insulting to the retirees. >>chris: we put on the screen the items you think could be cut and trimmed. and a final thing, senator, do you get a sense that there is a slit in the g.o.p. because of the negotiations? cantor has been getting harassmentered -- hammered. do you feel there is a split? >>guest: look, what i see developing is a growing consensus on the cut, cap and balance approach. and senator mcconnell signed on as a cosponsor to the cut, cap, balance act. that is where the consensus is growing. i focus on areas of agreement rather than on disagreement. >> i have five children and nine
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grandchild and i would rather have smores at home. >>chris: a big fan of smores but not at camp david. house speaker john boehner seeing no need for a weekend retreat, either. mike, i am glad you are there because from new york i cannot keep track on who is saying what? >>guest: it makes your head spin. this is the 5th consecutive day of white house debt talks with the talks so far yet to produce a major breakthrough but house spokesman carney setting expectation say do not expect a hallelujah meeting but he talked of the level of cuts on the table. >> that is $1.7 trillion significant of itself and president wants more. because that significant agreement is right there on the table to be achieved if people
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are willing to lead and compromise and not posture and not cater to segments of their constituency. >>chris: the president set a deadline of tomorrow to assess essentially where they are and if a big deal is possible. today, treasury secretary geithner was on capitol hill emphasizing the urgency of the matter. >> we looked at all available options and we have no way to give congress more time to solve the problem and we are running out of town. >>chris: but the meeting ended where it appears the tension could be building. house majority leader cantor said the president abruptly walked out of the meeting and democrats say the president told the group what he had to say and it was time to leave. and cantor has taken heat and despite the questions on the relationship define boehner and
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cantor, boehner had cantor's back. >> we have been in the fight together and any suggestion that the role that he has played in the meeting has been anything less than helpful is wrong. we're in the fox hole. >>chris: that sets the stage for the meeting starting any moment where they will talk about revenue, the tax code, and, also, health costs to see to there are more savings that can be carved up. >>chris: democratic leaders signaling if there is in deal tomorrow they may have to go with the backup plan of mcconnell. would that be the plan if you got to tomorrow with no deal, sir? >>guest: well, there will be no republican only deal or democrat only deal. the republicans criminal the house and democrats control the senate. this talk that the republicans
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will pass something and force the president to sign it forgets the upper chamber. we have to have a plan that passes the senate and senator mcconnell laid out a plan that the democrats are supportive of so i think you could see the mcconnell plan come forward but you will not see cup, cap, and whatever nonsense because the president would never sign it. okay? he said he will not sign it. he is not signing it. we need the problem resolved. i have a letter from 500 leading c.e.o.'s in the country who say we need an agreement, the two parties can resolve this problem, we are putting our economy at risk. we see moody's say we have to get the deal done and the reason they are meeting five days in a row they know we need to resolve this. >>chris: what is it about mcconnell's plan that broke the ice? that makes both sides okay with it since we have been so far
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apart for so long? >>guest: what is really going to happen, the white house meeting they will have an agreement because there is a fall back plan. that is to say as speaker boehner said we will have an an adult conversation and we could have a plan they agree to tomorrow and that is why carney laid out the $1.6 trillion in cuts that people are prepared to make. right? now the question is, and they moving to this today, the question is revenue. what part of the revenue can we enhance that republicans will go along with? and i know they want to protect billionaires and millionaires and we should in the deal with these hoop holes that allow people to not contribute appropriately. >>chris: that is where you will find agreement, fixing the
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tax code, simplifying the tax code. both sides probably agree you can build revenue by simplifying the tax code without adding taxes to individuals and corporations already. and reducing the tax rate for corporations. do you agree? >>guest: that is music to my ears i have a proposal to get rid of the entire income tax and go to a consumption tax. what will happen between now and then, there be an agreement that generates revenue because when this deal has been done before, president reagan did it, and president bush did it, it always has a group of spending cuts and a group revenue raisers so there will be a balanced plan or there will be the mcconnell plan and that is where we are. >>chris: thank you, congressman. stay tuned.
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>>greg: head over to a small town in pennsylvania restaurant
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and the owner is getting big time attention today because he place add ban on children. starting saturday, there will be no kids allowed inside his restaurant under the age of six. with us now, is mike. what drove you to this decision? >>guest: well, four factors. over the years, the increasing number of small babies that were brought to the facility. nothing against babies but their only means of communicating is to cry and we felt it was inappropriate in an adult venue as ours to have them. second, over the years the decline in the behavior of two to five-year-olds where they are increasingly vocal and will not it is still and i felt one would block tackle a server and result in injury to someone. and, perhaps most disturbing, the lack of cooperation from parents. there seems to be a minority but a minority who think they can do
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whatever they please. we are very genteel and civil in our place and our servers are instructed to go to an offender table and ask them to remove the child until it quiets down and not disturb others but we get the looks as, who are you to talk to me? and most important variable was on behalf of customers, many of whom complain they would leave their children at home with a sitter only to come to our place expecting to have a quiet dinner and find a noisy child. >>chris: you are getting publicity and it is through a strange way? >>guest: believe me i am not that sort of person, initiated by a customer would called a local tv station and one thing led to another and here i am, 50 interviews interviews and half a dozen national t appearances carrying the torch. >>chris: what is the response from people all over the
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country? >>guest: overwhelming. overall our e-mails are 11-1 and our guys last night told me yesterday they were coming in at a rate of 20-1 in favor of what we are doing. there is a big difference between the two sides. those in favor of my position are offering reasoned and measured calm and rational stories and most of them from parent whose have described how they raised their children in not taking them prematurely to a restaurant or taking them to a venue where it is okay and every table has noise. but on the other side are a group who say things like, well, you are a jerk, and on several of the internet forums people have been asking them to put forth or tick late a position and i'm afraid they have nothing because we have not seen one. >>chris: a paper in new york
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talked of the local restaurants in new york that have similar policies where children are welcome but the industrialers -- but the strollers are not and on long island where kids under found are thought allowed. that could be taking it too far, 14, right? you would think a 13-year-old could control himself. >>guest: we have never had any negative experience with any kid of that age. the few, very few come to our place at that age but not by themselves and those with parents their behavior has been appropriate. >>chris: how far away are people e-mailing you? >>guest: every corner of this country and tonight i will a doing my third fox show in australia. i did one in new zealand the other night, i have done things nationally, and in canada, and everywhere but hawaii, the only place i have not heard from. >>chris: great story. and maybe this would not happen
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in parents i don'ted their kids, something tells me that is what laura would say and something tells me she is going to have something to say about this, too.
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>> i refuse to help president obama get re-elected where republicans have co-ownership of a bad economy. >>chris: mcconnell getting backing on his plan. laura? >>guest: my goal was to make you beam and smile. okay? when the market get as blast i see a no expression or something
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like you just lost your best friend. >>chris: a day trader? >>guest: sell, sell, chris' facial expression. doing a great job for neil cavuto and he is hard to replace. >>chris: author of a brand new book and some of the conversations, you had mcconnell on your radio show yesterday and he is defending the plan. what did he say? >>guest: firing on all cylinders hearing from bachmann and gingrich and bachmann. gingrich says i understand the strategy to hang this on obama but he says, look unless you push and push and push them you will in the get anywhere so you have a three tiered way of asking or making obama ask for a debt cereal increases, gingrich says the media will forget it
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and dill get back page statement and not front and center so get everything you can get now, right up to the wire, enforce the house to vote in social security protection bill so that cannot be used and make the senate say gentleman or no. that is an interesting strategy. >>chris: but the other side knows you want to employ that. >>guest: not me. >>chris: they necessity they want to employ that strategy so they will in the give because they know at the 11th hour they will give in like they will give in and there will be a deal. >>guest: i will do what obama does, don't call my bluff. the meeting is over. >>chris: nothing more than cantor. >>guest: well, when you are the president of the united states, he is the chief executive and he is the guy who said i will work nonstop until this economy is back on even footing. you don't have the luxury, you
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can do whatever you want but the american people are watching, and to push back and say don't call my bluff, and i will take this to the american people, if i were cantor i would say there are mike folks out front, open the doors and let them watch the conversation. >>chris: long before we started hammering the debt ceil talk i have talked to people about 2012 and men have said the only way we will get a lot of the significant spending cuts done is in the g.o.p. takes over washington in 2012 because other than that, the g.o.p. won big last fall you have the democrats if control of the senate and a democrat in the white house and nothing will be pushed through, so, part of this mcconnell plan, biding our time until 2012 where we can say, thank god we got through it and now we have control of the white house and control of capitol hill and we can move legislation. >>guest: it would be smarter in two weeks. but a lots of people are saying
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if this is good strategy, it could be premature because you want to keep the heat on the people. for once we are seeing both parties focus on debt. if the democrats were in charge of the house does anyone out there watching fox news right now think they would be talking about spending cuts? they would have raised taxes, raised the debt ceiling and probably put a new stimulus in effect. >>chris: a significant change in the conversation. and your book, i started reading there and i was with you, following you, with you, with you, and it is essentially, what is wrong with this world particularly our country. >>guest: our culture. >>chris: i get do page 65 and i was with you, with you, with you and at page 65 and i said wait a minute, that's me. can i quote this?
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"tattoos are not only disgusting but low cost but as you age they change shape." i do not have an eagle tattoo. >>guest: what do you have? >>chris: i can share, my grandfather, who i never met--. >>guest: a sob sorry you are making me look back. >>chris: this is me getting the tattoo. you are buff there. this is my grandfather's military badge from world war ii, and if i am a punk that lives in ohio and i get a tribal arm band on my arm, well, i look at that and say you don't even know much. >>guest: how much time do you doubt do working, do you work out 20 hours a day? you should have put the stock sticker on your arm. you should have figured out a way to move the tattoo around
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like--. >>chris: i got you to compliment me at least. >>guest: this is beyond buff. >>chris: how do you get do 305 pages of things you see wrong with our culture. >>guest: what we find, i am a mom of three kids under the age of six, and i get sucked into the crazy parenting friends, my son is three and i have not signed him up for chinese classes and you feel bad for stuff like that. >>chris: i dodge strollers every day but i see what you are going through. >>guest: strollers have their own ipads and holders, and pockets but the problem is cars are getting smaller and strollers are getting bigger. i decided when i went to a shopping mall i looked around and i saw men like you getting big tattoos and it was great that you decided to forego the
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cry -- eyebrow threading. when you see it in its entirely like chris brown, from rihanna, he is performing tomorrow on the set of the "today" show and nbc, that show, i like a lot of the people, self-esteem, how is chris brown to be rewarded with a platform on "today," after trashing the abc set and writing lyrics that include the "n," word and that is while. if we go down this road we will not find ourselves in a place where we cannot crawl out of it. >>chris: i have a short attention fan and my favorite, these are small short stories, easy read and my favorite was words that are in need of revival.
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hobo, bum, harlot, and strumpet. words that somehow left the popular language and we need to bring them back. thank you so much, laura. and what is more scary? the battle over this or democrats worried about this?
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>>chris: raise it up or risk america's credit rating going down if a debt deal is not reached. and our reporter likes to remind everyone they are worried about something else. our star from fox business network, we get to august 2nd without raising the debt ceiling will our debt be downgraded? >>guest: what is important, chris, and you put it very well, moody's and s&p are both saying what matters most there has to be a substantial credible machine to cut the deficit and s&p is saying, still, if you raise the debt ceiling there will still be a one in three chance there will be a down grid
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by 2013 if they do not see a credible plan to cut the deficit. >>chris: what happens in that situation? japan was downgraded and it was not that big of a deal. >>guest: that is important. but what we will see is fannie mae and freddie mac downgraded and, also, 7,000 municipality could see the bonds downgraded and surprisingly we are seeing, moody's is saying that the u.s. government backed bonds from israel and egypt so those bonds would be down grades, too. >>chris: so would rates immediately go up and mortgage and car loans will all cost more. will that happen? >>guest: that is what we hear from wall street but the ranges differ a third of a percent up to 1 percent. some would say, look, our borrowing rates will zoom higher
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and we could lose jobs and there is a debate whether a down grid gives up a double dip recession. chris but the possibility exists? >>guest: yes, and another point, the debt ceiling negotiations on the deficit and deficit cuts are done behind closed doors with no transparency. we did not know if they are just promises to enact promises that may never occur like with the health reform bill was enacted, done behind closed doors. so do the cuts come through or are they promises? that is key. >>chris: they will not know, either. so, 6:00 tonight? >>guest: yes. filling in for neil. >>chris: and in the middle of that, you get this.
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democrats renewing a fight against styrofoam products in the congressional cafeteria in the middle of the debt battle enough to make my next guest sick to his stomach. interesting timing on all of this. >>guest: it is, like a scene from "the graduate." we got where we are, one word, sty row form. the house is on fire and they run over to touch their favorite 70's poster on the environmental issues and say we have to get the economy moving butment if it means permitting oil, or sacrificing the agenda to make electricity rates skyrocket we feed to get the state out of the consumer's lives but not if we cannot tell them what type of light bulb to use and we support of idea of cutting spending $500,000, but in the if it means giving up our obsession with styrofoam cups because we may go
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under but, gash darn it, we will have recycled our garbage. >>chris: it is an amendment to the 2012 appropriationsibility, and that drives people crazy as you have a markup bills and you mackup a bill with something like styrofoam cups in the cafeteria? >>guest: and they have time to have their leader say this is an example of republicans trying to save something lick -- like half a million by not micromanaging everything of what you can use and she says that is spiteful and stupid. but something on the order of ten household incomes for the average american saving that is not in order to shelf one of your priorities, remember, we must save the country but in the if it means shelling any policy or program or agenda. they like the idea of saving money but they cannot attack themselves to saving specific
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money because of the ideological agenda items. it is amazing. they cling to them. >>chris: and a democrat from virginia "there are bigger issues to resolve such as increasing of debt limit before it's too late to present a major economic disaster." >>guest: however. >>chris: but those discussions do not appear with the house appropriations committee work on the 12 annual appropriations bills. >>guest: sounds like a holiday song. he is facing around his office or riding in the passenger seat of a car. these people, if they were parents they would have their children taken away if they were so unable to focus on their welfare and they behind the wheel of our economy, of policy, of the nation's future. the house is burning down economically and they cannot let go of this obsession with their
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environmental regulations. >>chris: it is part of "green the capitol," a program nancy pelosi put interest place. not only styrofoam but composting program that my understanding is not as efficient as they thought it would be and this is all part, this is part of what we talked about yesterday that the government goes into plan, has a plan of action without understanding all of the bells and whistles. >>guest: ready, fire, aim. the hippy vote is not going anywhere. the issue is the chinese saying when there is food on the table there are many problems. when there is no food on table there is only one program and the people can not focus and that is the problem focusing on the wrong things which says a lot about how we got here, one word: styrofoam. >>chris: good to see you. food companies revamping ads for
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kids as the food police move in. a mom is saying not to cave. .
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>>chris: and the internet search giant google jumping high are by 10 percent over gains made if profit and sales. and this is earning season on wall street so almost every day after the closing bell big companies will give us earnings. google at least today on a positive earnings report. that stock will move higher after hours and tomorrow morning. they met fighting monsters
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online and today they are fighting each other in court. a woman in witch is suing her online ex-boyfriend in washington after he broke her heart on facebook. the 50-year-old mom wants more than $8,000 from the 35-year-old dad to help her mend her broken heart. does she have a case? and now an attorney, can you sue for broken heart? >>guest: not exactly. in this case i understand she is upset but i am really not sure over this lawsuit. there is a procedural issue, he does not even live in michigan, and, also, what are you suing for? she bought a plane ticket, and that does not include money that you need to be returned when you break up. >>chris: there is the gift she bought him after the relationship started, and this
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is also a defamation claiming he said things on facebook about her, and difficult to prove on both sides. but, first, the gifts, you have to prove the gifts were given great her to him in the expectation that in return he would marry her? >>guest: that is the only business of the case. if there is expectation of marriage a gift can be considered something you can get the money returned for or the gift back. but in this case i don't know exactly how far the relationship went because it does not seem like they met each other. >>chris: it sounds like any didn't face-to-face. ings -- >>guest: i doubt there was a proposal. >>chris: in that same area, could a ring be considered a gift, that is, given on the expectation of marriage, and then if the engagement is broken
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off, the woman owes the man the ring back? >>guest: in middle east states that is a good question because the woman owes the ring become, if the man sues for it or requests it. most men say, well, you kow, it didn't go so well, keep the ring but if he wants it back he is entitled. >>chris: i would think this case, although we have not heard many like this, this is becoming a common case, so many are meeting online, so much interaction with facebook, and she is suing him for defamation for things he said or reportedly said, supposedly, about her on face book, people are saying stuff about everybody all the time. >>guest: that is an interesting legal issue. how far do we go with what is said on facebook? every state has a different criteria. michigan standard where she sued is extremely difficult. very, very stringent. what is opinion? what is fact? that can be defamation.
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if i have an opinion about something, not necessarily, so, it is a hard case to prove, but, on facebook, now, we have to think, what am i saying about someone? and is this defamation? we have to speak about the cases in the future i will see more of you. thank you. good to see you. the government pushed and does food companies just cave over food prices?
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>>chris: you are looking at photographs released by the white house of today's debt ceiling meeting right now starting about half an hour ago. you can see the serious looks on the face of president obama and speaker boehner and now we will contrast today to yesterday.
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here is yesterday's meeting. obviously it is getting more tense at the white house as we near closer and closer to the august 2nd deadline. yesterday. and today. well, companies dodging the food police? 8:00ing up with their own set of guide line for ads targeting children from kelloggs to mcdonald's, the companies agreeing to stop advertising food and drinks unless they meet certain criteria for sodium and facility and sugar and left strict than what uncle sam is pushing. my guest says the companies should not have caved to government pressure. and she is a mom. radio talk show host and mother of four joining me. martha are you telling me parents should shoulder the responsibility here? >>guest: absolutely. there are choices out there for all kinds of good food and bad food and this all started with the government trying to say
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what you can advertise and what you can't, it is a free business, a business should be able to do what they plan to do and that is provide products this taste good to a wide variety of people. we had a lot of choices in my house when my children were growing up and sometimes they had sugary cereals but we bought them not for ads but because it tasted good. >>chris: a science laboratory controlled the variables including the number of ads and when i was a kid, i remember the same ads run on the same television program for sugary cereals and cookies and what not, and, yet, the oh boast -- obesity rate has grown tremendously in the decades science i was a kid so obviously it is not the ads, is it? >>guest: why think it is the ads and you want healthy spreads and we are thinking of healthyed fors with it should be the
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individual family chase, the parents' choice and every child is different and this idea of starting to make them so body conscious, i don't think it is the right way to go. you need healthy active children and you do that with good choices. >>chris: general mills and kellogg, great majority of the cereals certainly, but, of other foods, as well, they advertise to kids and this will take one out of every they food items advertised to kids off the table. it will affect more than the three big companies. does every food company now is to fall in line with what the industry leaders are doing? >>guest: it is a ripple effect. what concerns me is being done through fear. they are afraid they will be regulatessed so they are caving. if they don't get regulated by the government, great, but that is what is around the pike if we don't have a major change in the direction of the executive
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branch of the government, the departments in the executive branch because they are trying to control everything from the air we breathe to what we eat to how we sleep and everything else and it has to go back to families making the decisions. >>chris: martha, why are the obesity rates moving up these days? >>guest: a lot of processed food and eating out and i don't they were it is what you are eating at home but eating out. and lack of activity. people are afraid to send their kids out to play. i locked my kids out of the house during the day so they had to play all day. can you not do that anymore. >>chris: i hear you. martha, thank you very much. we appreciate it. in one hour on the fox business network, indiana governor and senator bayh the join us and he knows how to compromise and his advise to the guys in the white
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house. verizon claims i 4g lte is twi as fast as &t.
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we're putting them to the test against the speed of a rescue unit. go ! they're downloading a music album. the first network to finish gets rescued. does your phone know that we're racing ? done ! verizon's done ! i've got seven left ! the fastest networin america. verizon. built so you can rule the air. now powering the lg revolution.
4:59pm